What has been introduced
While details are limited, there are new programs to replace the wage and rent subsidies.
Tourism and Hospitality Recovery Program
While details on the full scope have not been finalized, a new program was created to provide wage and rent subsidies for hotels, tour operators, travel agencies, festivals, convention centres as well as restaurants. The Canada Revenue Agency (CRA) will determine the industry codes and types as part of their administration of the program.
Maximum wage and rent subsidy 75%. To receive this maximum, your business must experience an average revenue loss of at least 40% over 12 months (March 2020 to February 2021 as a comparison) as well as a minimum revenue loss of 40% in current month.
The subsidy starts at 40% and matches the revenue loss up to 75%.
- 40% revenue loss = 40% subsidy
- 50% revenue loss = 50% subsidy
- 75% revenue loss = 75% subsidy
- 80% revenue loss = 75% subsidy
Hardest Hit Business Recovery Program
This program is open to businesses in all other sectors that have experienced revenue reductions of at least 50%.
Maximum wage and rent subsidy 50%. To receive this subsidy, your business must experience an average revenue loss of at least 50% over 12 months (March 2020 to February 2021 as a comparison) as well as a minimum revenue loss of 50% in the current month.
- 49% revenue loss = 0% subsidy
- 50% revenue loss = 10% subsidy
- 60% revenue loss = 26% subsidy
- 75% revenue loss =50% subsidy
- 80% revenue loss = 50% subsidy
If full lockdown measures are put into effect in your community, and you show a revenue loss of 40% or more in that period, you can access rent and wage subsidy support at the same levels at the Tourism and Hospitality Recovery Program rate plus an additional 25% on the rent portion without the 12-month revenue loss other programs require.